Stocks should head higher on their fundamentals, not on the backs of those who made a losing bet, Cramer says.

NEW YORK (TheStreet) -- In stocks, as in life, having bad leaders can be a problem, Jim Cramer told "Mad Money" TV show viewers Tuesday as he commented on the day's market action.

Cramer said today's strong rally in, of all things, the social media stocks was seen as a bad omen by seasoned investors. While Twitter's (TWTR) rally above its initial public offering price may seem like a good thing on the surface, in reality the snap-back move is nothing more than short sellers who got too greedy and were caught on the wrong side of the trade.

Stocks should head higher on their fundamentals, not on the backs of those who made a losing bet, Cramer said. He's not a fan of Twitter but would instead consider Facebook (FB), which has had time to find its footing after last year's disastrous IPO, or LinkedIn (LNKD), which is spending like mad to become the dominant player in its space.

The short-sellers in stocks like Twitter reminded Cramer of those eternally against Amazon.com (AMZN), a trade that has been wrong for years.

Other worrisome leaders in today's market included Ulta Salon (ULTA), Green Mountain Coffee Roasters (GMCR) and PVH Corp (PVH). Cramer said Ulta is also a heavily shorted name while Green Mountain is the ultimate battleground stock. PVH, however, is a story where analysts lost their faith in the company but will be proven wrong as CEO Manny Chiraco rights the ship in 2014.

Also disturbing in today's trading was the fact that two long-term leaders, Starbucks (SBUX) and Gilead Sciences (GILD), both got crushed. Cramer said he's suspicious of this negative action and would be a buyer of both names on continued weakness.

Executive Decision: Morris Goldfarb

In his "Executive Decision" segment, Cramer sat down with Morris Goldfarb, chairman and CEO of G-III Apparel Group (GIII), a stock that's up a full 100% for the year and 500% since Cramer first spoke with Goldfarb in March 2006. G-III just delivered a strong quarter with a 24-cents-a-share earnings beat.

Goldfarb said G-III started out in the 1950s as a family-run business and still operates that way today. Many things have changed since then, however, because the company is now predominantly a women's apparel maker and also has a billion-dollar direct-to-consumer business.

Goldfarb is also benefittng from Calvin Klein because GIII licenses the name from another Cramer fave, PVH Corp. Goldfarb said PVH has been an excellent partner over the years and G-III brings a lot of value to the Calvin Klein name, as it does to one of its newer partners, Ivanka Trump.

When asked about brands overall, Goldfarb said Americans still love brand-name apparel, if done right. He said a good brand is a lot more than just a name, it's a design and a price and the entire package.

Finally, Goldfarb confirmed that after strong sales in October and November, apparel sales in the first few days of December have been sluggish. He remains hopeful things will recover later in the month.

Cramer said he's still a fan of G-III Apparel.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with no fewer than three technical analysts over the chart of Apple (AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, to see if this stock, which is up 41% from its lows but only 6% for the year, can still power higher.